EXPENDITURE ACCOUNTING: GOVERNMENTAL FUNDS

Capital Leases

Ilustrasi 6-4 akan membantu dalam menjelaskan sewa modal. Juga, karena akuntansi untuk sewa
modal harus sama dengan akuntansi untuk pembelian angsuran aset modal, akan sangat
membantu bagi siswa untuk melihat contoh penerbitan catatan jangka panjang dan pembelian
aset modal berikutnya dengan hasil wesel jangka panjang ditambah sejumlah uang tambahan.

Misalnya, asumsikan bahwa pemerintah menerbitkan wesel bayar lima tahun, 10 persen,
$100.000 untuk mengumpulkan $100.000 untuk departemen Dana Umum. Wesel tersebut
mensyaratkan pembayaran tahunan sebesar seperlima dari $20.000 pokok ditambah bunga pada
akhir setiap tahun. Pemerintah menggunakan $100.000 untuk membantu membiayai pembelian
$120.000 komputer untuk departemen tersebut.
The entries are:

Cash ................................................................................................ 100,000

Other Financing Sources—Note Proceeds............................. 100,000

Expenditures—Capital Outlay........................................................... 120,000

Cash........................................................................................ 120,000

Efek pada laporan keuangan adalah saldo kas yang lebih rendah sebesar $20.000 di neraca,
pengeluaran untuk pengeluaran modal sebesar $120.000, dan sumber pembiayaan lainnya
sebesar 100.000 dalam laporan pendapatan, pengeluaran, dan perubahan saldo dana.

Sewa modal dicatat dengan cara yang memiliki hasil pelaporan keuangan yang setara. Oleh
karena itu, jika pemerintah mengadakan sewa modal untuk komputer dengan biaya yang dapat
dikapitalisasi (nilai sekarang dari pembayaran sewa minimum) sebesar $120.000, termasuk uang
muka awal sebesar $20.000, ayat jurnalnya adalah sebagai berikut:Expenditures—Capital Outlay
120,000

Cash ................................................................................................ 20,000

Other Financing Sources—Capital Leases............................ 100,000

Kas yang dilaporkan dalam neraca dikurangi $20.000, dan laporan pendapatan, pengeluaran, dan
perubahan saldo dana mencakup pengeluaran belanja modal sebesar $120.000 dan sumber
pembiayaan lain sebesar $100.000.

Pembayaran selanjutnya adalah pembayaran utang atas kewajiban jangka panjang umum dalam
kedua kasus dan harus diakui pada saat jatuh tempo.

Problem 1 (Budgetary Entries, Balances)

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The following General Fund appropriations were made for 20X4 by the city of Dulaney:

City Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000

Mayor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Courts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
City Clerk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Department of Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Department of Police . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
Department of Fire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 60,000
Department of Public Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Retirement of Long-Term Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
$300,000

Estimated revenues are $350,000; the council reserved $30,000 for contingencies.
The following appropriations revisions and additional appropriations were subsequently
authorized:

Reductions (from): Increases (to): Amount

City Council Fire Department $ 750
City Clerk Mayor 1,500
Finance Department Public Works Department 1,500
Interest Courts 1,000

Additional Appropriations Appropriated for: Amount

Reserve for Contingencies Police Department $ 1,500
Reserve for Contingencies Fire Department 2,200
Reserve for Contingencies Courts 750
Reserve for Contingencies Public Works Department 3,000

(a) Prepare the General Fund (GF) journal entry necessary to record the adoption of
the budget, showing both the General Ledger and the Expenditures Subsidiary
Ledger accounts.
(b) Prepare the GF journal entry to record the revised and additional appropriations,
showing both the General Ledger and the Subsidiary Ledger accounts involved.
(c) Prepare a statement showing the appropriations balances after the appropriations
revisions and additional appropriations.

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Problem 2 (General and Subsidiary Ledger Entries; Reconciliation)

The city of Beverly Heights General Fund had the following transactions, among others, in
20X7:

1. Appropriations were made as follows:

Personal Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 111,400
Contractual Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,700
Materials and Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,500
New Patrol Cars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
$161,600

2. General Fund cash, $2,000, was paid to a Debt Service Fund to provide for debt
service.
3. A long-term note of $8,300, including interest of $1,300, and a short-term note of
$2,500 (including $150 interest) came due. The Beverly Heights Council had not
made appropriations for these items. The necessary action was taken, and the notes
and interest were paid.
4. General Fund cash, $100,000, was paid to an Enterprise Fund to finance construction
of a new auxiliary generator, and $50,000 was contributed to establish a central motor
pool facility. The Enterprise Fund will repay the General Fund in10 equal annual
installments beginning January 1, 20X9.
5. The council increased the appropriation for personal services by $500.
6. Materials and supplies are accounted for on the purchases method. The beginning
inventory was $200; $8,500 of materials and supplies were ordered during the year.
New patrol cars costing $20,000 were also ordered.
7. The following expenditures were made by the city:

Personal Services . . . . . . . . . . . . . . . . . . . . . $111,700

Contractual Services . . . . . . . . . . . . . . . . . . . . . 8,700
Materials and Supplies . . . . . . . . . . . . . . . . . . . 7,500 (encumbered for $7,600)
New Patrol Cars . . . . . . . . . . . . . . . . . . . . . . . . 21,200 (encumbered for $20,000)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,800
$160,900

The council passed the amendments to its appropriations necessary to make the
foregoing expenditures legal.
8. Materials and supplies on hand at year end amounted to $1,000.

(a) Prepare and post the general journal entries required to record the transactions in the General
Ledger and in the Expenditures Ledger. Assume that there were no outstanding
encumbrances at the beginning of 20X7.

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(b) Prepare a trial balance of the Expenditures Ledger and prove its agreement with the control
accounts.
(c) Prepare the general journal entries required to close the expenditure accounts in the General
Ledger and the Expenditures Ledger. Assume that all appropriations lapse, but a reserve is
reported for encumbrances outstanding at year end.

Problem 4 (GL and SL Entries: Errors, Changes, Leases, Pensions, Claims and Judgments, etc.)

The following transactions and events relate to the General Fund of Harmer Township for the
20X8 fiscal year.

1. Early in 20X8 it was discovered that at the end of 20X7 (a) encumbrances recorded
for equipment, $30,000, should have been recorded as an expenditure and liability,
$31,000, and the liability was vouchered for payment, and (b) interest payable on tax
anticipation notes, $16,000, was not accrued.
2. Appropriations were revised as follows:
Appropriations Decreased
Recreation Department—Salaries. . . . . . . . . . . . . . . . . . . . . . . . $ 25,000
Parks Department—Equipment . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Appropriations Increased
Fire Department—Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000

3. The township entered into a capital lease for computer equipment with a fair market
value (and net present value) of $500,000.
4. A capital lease payment on the computer equipment, $60,000 (including $40,000
interest), was vouchered for payment.
5. Harmer Township changed its method of materials inventory accounting to the
purchases method from the consumption method (no related reserve) at the beginning
of 20X8.The beginning inventory of materials was $90,000.
6. During the year it was realized that (a) $44,000 of salaries and wages charged to the
General Fund Parks Department appropriation should have been charged to a Special
Revenue Fund, and (b) $19,000 charged to Police Department—Equipment should
have been charged to the Fire Department.
7. At year end it was determined that the township had estimated liabilities (including
legal and related costs and net of insurance recoveries) for unsettled claims and
judgments of $700,000, of which $160,000 is considered a current liability. This is
the first year the township has recorded such liabilities—they had not been considered
reasonably estimable in prior years.
8. An internal audit during the year revealed that $300,000 had been embezzled and the
Cash account was overstated by that amount. The insurance company that bonds
employees has agreed to reimburse the township $225,000 on this embezzlement.
9. Harmer Township paid only $150,000 to the trustee of its defined benefit pension

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 plan during 20X8, even though the actuarially required contribution for 20X8 was
$400,000. It is uncertain when the remaining pension plan underfunded contribution
will be paid.

Prepare the journal entries to record these transactions and events in the General
Ledger and Expenditures Ledger of the General Fund of Harmer Township for the
20X8 fiscal year.